On January 2, 2020, Gamu Company purchased as a long term investment 10,000 ordinary shares of llagan Corporation for P70 per share, which represents a 1% interest. On July 1, llagan Corporation declared its annual dividend on its ordinary shares of P5 per share payable on August 1 to shareholder's of record at July 25, 2020. On jut 20, 2020 Gamu needed additional cash for operations and sold all 10,000 shares llagan for P100 per share. For the year ended December 31, 2020, Gamu should report on its income statement a gain on disposal of
On January 2, 2020, Gamu Company purchased as a long term investment 10,000 ordinary shares of llagan Corporation for P70 per share, which represents a 1% interest. On July 1, llagan Corporation declared its annual dividend on its ordinary shares of P5 per share payable on August 1 to shareholder's of record at July 25, 2020. On jut 20, 2020 Gamu needed additional cash for operations and sold all 10,000 shares llagan for P100 per share. For the year ended December 31, 2020, Gamu should report on its income statement a gain on disposal of
Chapter16: Accounting Periods And Methods
Section: Chapter Questions
Problem 15DQ
Related questions
Question
On January 2, 2020, Gamu Company purchased as a long term
investment 10,000 ordinary shares of llagan Corporation for P70 per
share, which represents a 1% interest. On July 1, llagan Corporation
declared its annual dividend on its ordinary shares of P5 per share payable
on August 1 to shareholder's of record at July 25, 2020. On jut 20, 2020
Gamu needed additional cash for operations and sold all 10,000 shares
llagan for P100 per share.
For the year ended December 31, 2020, Gamu should report on its
income statement a gain on disposal of
![On January 2, 2020, Gamu Company purchased as a long term
investment 10,000 ordinary shares of llagan Corporation for P70 per
share, which represents a 1% interest. On July 1, llagan Corporation
declared its annual dividend on its ordinary shares of P5 per share payable
on August 1 to shareholder's of record at July 25, 2020. On Juk 20, 2020
Gamu needed additional cash for operations and sold all 10,000 shares
llagan for P100 per share.
For the year ended December 31, 2020, Gamu should report on its
income statement a gain on disposal of](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2f73efc4-bce7-4251-aaa3-af2e02c003d8%2F0115b66b-51e4-4885-b216-547f33956d7f%2F7odorwb_processed.jpeg&w=3840&q=75)
Transcribed Image Text:On January 2, 2020, Gamu Company purchased as a long term
investment 10,000 ordinary shares of llagan Corporation for P70 per
share, which represents a 1% interest. On July 1, llagan Corporation
declared its annual dividend on its ordinary shares of P5 per share payable
on August 1 to shareholder's of record at July 25, 2020. On Juk 20, 2020
Gamu needed additional cash for operations and sold all 10,000 shares
llagan for P100 per share.
For the year ended December 31, 2020, Gamu should report on its
income statement a gain on disposal of
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